diff --git a/app/delivery/send_to_providers.py b/app/delivery/send_to_providers.py
index 82c7879ba..fa9ccfba9 100644
--- a/app/delivery/send_to_providers.py
+++ b/app/delivery/send_to_providers.py
@@ -56,7 +56,7 @@ def send_sms_to_provider(notification):
 
         if service.research_mode or notification.key_type == KEY_TYPE_TEST:
             notification.billable_units = 0
-            update_notification(notification, provider)
+            update_notification_to_sending(notification, provider)
             try:
                 send_sms_response(provider.get_name(), str(notification.id), notification.to)
             except HTTPError:
@@ -76,11 +76,14 @@ def send_sms_to_provider(notification):
                     sender=notification.reply_to_text
                 )
             except Exception as e:
+                notification.billable_units = template.fragment_count
+                notification.sent_by = provider.get_name()
+                dao_update_notification(notification)
                 dao_toggle_sms_provider(provider.name)
                 raise e
             else:
                 notification.billable_units = template.fragment_count
-                update_notification(notification, provider, notification.international)
+                update_notification_to_sending(notification, provider, notification.international)
 
         current_app.logger.debug(
             "SMS {} sent to provider {} at {}".format(notification.id, provider.get_name(), notification.sent_at)
@@ -116,7 +119,7 @@ def send_email_to_provider(notification):
             reference = str(create_uuid())
             notification.billable_units = 0
             notification.reference = reference
-            update_notification(notification, provider)
+            update_notification_to_sending(notification, provider)
             send_email_response(reference, notification.to)
         else:
             from_address = '"{}" <{}@{}>'.format(service.name, service.email_from,
@@ -133,7 +136,7 @@ def send_email_to_provider(notification):
                 reply_to_address=validate_and_format_email_address(email_reply_to) if email_reply_to else None,
             )
             notification.reference = reference
-            update_notification(notification, provider)
+            update_notification_to_sending(notification, provider)
 
         current_app.logger.debug(
             "Email {} sent to provider at {}".format(notification.id, notification.sent_at)
@@ -142,7 +145,7 @@ def send_email_to_provider(notification):
         statsd_client.timing("email.total-time", delta_milliseconds)
 
 
-def update_notification(notification, provider, international=False):
+def update_notification_to_sending(notification, provider, international=False):
     notification.sent_at = datetime.utcnow()
     notification.sent_by = provider.get_name()
     if international:
diff --git a/tests/app/celery/test_provider_tasks.py b/tests/app/celery/test_provider_tasks.py
index c0dfbdc63..65b63682a 100644
--- a/tests/app/celery/test_provider_tasks.py
+++ b/tests/app/celery/test_provider_tasks.py
@@ -112,17 +112,6 @@ def test_should_retry_and_log_exception(sample_notification, mocker):
     assert sample_notification.status == 'created'
 
 
-def test_send_sms_should_switch_providers_on_provider_failure(sample_notification, mocker):
-    provider_to_use = mocker.patch('app.delivery.send_to_providers.provider_to_use')
-    provider_to_use.return_value.send_sms.side_effect = Exception('Error')
-    switch_provider_mock = mocker.patch('app.delivery.send_to_providers.dao_toggle_sms_provider')
-    mocker.patch('app.celery.provider_tasks.deliver_sms.retry')
-
-    deliver_sms(sample_notification.id)
-
-    assert switch_provider_mock.called is True
-
-
 def test_send_sms_should_not_switch_providers_on_non_provider_failure(
     sample_notification,
     mocker
diff --git a/tests/app/delivery/test_send_to_providers.py b/tests/app/delivery/test_send_to_providers.py
index f0bb62dc2..ae8b06782 100644
--- a/tests/app/delivery/test_send_to_providers.py
+++ b/tests/app/delivery/test_send_to_providers.py
@@ -562,6 +562,26 @@ def test_should_update_billable_units_according_to_research_mode_and_key_type(
     assert sample_notification.billable_units == billable_units
 
 
+def test_should_set_notification_billable_units_and_provider_if_sending_to_provider_fails(
+    notify_db,
+    sample_service,
+    sample_notification,
+    mocker,
+):
+    mocker.patch('app.mmg_client.send_sms', side_effect=Exception())
+    mock_toggle_provider = mocker.patch('app.delivery.send_to_providers.dao_toggle_sms_provider')
+
+    sample_notification.billable_units = 0
+    assert sample_notification.sent_by is None
+
+    with pytest.raises(Exception):
+        send_to_providers.send_sms_to_provider(sample_notification)
+
+    assert sample_notification.billable_units == 1
+    assert sample_notification.sent_by == 'mmg'
+    assert mock_toggle_provider.called
+
+
 def test_should_send_sms_to_international_providers(
     restore_provider_details,
     sample_sms_template_with_html,